[Allpartners.music360-beta] Fwd: Sweden Will Start Paying U.S. Performers for Neighboring Rights—Here’s What Happened and How to Get Ready

Tue Sep 9 10:00:20 CEST 2025

Interesting, related to RAAP case

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Will Start Paying U.S. Performers for Neighboring Rights—Here’s What
Happened and How to Get Ready
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By *Chris Castle* on September 8, 2025

If you’ve been following the #IRespectMusic campaign, you’ll know that
broadcast radio in the US has never paid artists for playing their
records.  They pay songwriters and publishers but not artists or sound
recording owners.   Thanks to artist activists like Blake Morgan, and the
#IRespectMusic campaign, that issue has been front and center.  We’ve
supported legislation like the American Music Fairness Act and its
predecessor legislation that is backed by the MusicFirst Coalition,
SoundExchange and others.
Thanks Big Radio

There’s a catch to this outside the US.  Although the rest of the world
pays what are called “neighboring rights” for the public performance of
sound recordings, they typically have not paid US *artists *because *the US
law doesn’t require radio to pay their artists*.  So American artists get
screwed twice.  Thank you, Big Radio.

SoundExchange has managed to get around this exclusion with its
“international mandate” program directly with some 40-odd CMOs in countries
outside the US, but it was not the law.  If you are not up to speed on the
international mandate, this would be a good time to bone up—get started at
https://www.soundexchange.com/international-partners/
<https://musictechpolicy.wordpress.com/?action=user_content_redirect&uuid=65e13722ca9d9dc921763343684c2c2ae196acd6ac68d70e8a70817e008f9863&blog_id=15688400&post_id=34101&user_id=0&subs_id=380480140&signature=761c473c208cb41590bee6701b33c99c&email_name=new-post&user_email=alex@bmat.com&encoded_url=aHR0cHM6Ly93d3cuc291bmRleGNoYW5nZS5jb20vaW50ZXJuYXRpb25hbC1wYXJ0bmVycy8&email_id=5a08c8fce35c8ad6006630d3fd58a314>
The RAAP Case

But there’s some good news.  Five years ago, the European Union’s highest
court held in *Recorded Artists Actors Performers Ltd v Phonographic
Performance Ireland Ltd and Others* (a/k/a “RAAP”) concerning the Irish
collecting society that collecting societies across Europe must pay *royalties
to creators and labels from outside the Union—U.S. parties included—on the
same basis as domestic rightsholders*.  That RAAP decision was a big deal,
but of course, implementing the ruling is another story.

In plain terms (and this is a bit of a gloss, so lawyers calm down), the
court ruled that foreigners are owed the *same treatment as locals*in each
territory. That principle—*equal treatment regardless of nationality*—mirrors
the approach long embraced in U.S. royalty frameworks.  This is
particularly true with royalties administered by SoundExchange which cover
noninteractive digital transmissions like SiriusXM and webcasting.

After the RAAP case, the same court had a second case on similar issues and
reviewed the ripple effects of the RAAP decision (the *“**Kwantum”* case on
design rights), the tribunal *reaffirmed equal-treatment as the governing
law* across the EU.
What changed in Sweden

Against this backdrop, *Sweden has now written equal-treatment obligations
into its domestic law in line with the RAAP case*—a meaningful advance
toward fair pay for creators no matter their passport. Countries that have
not yet aligned their statutes since the Irish case should look to Sweden
and other adopters as models. Doing so isn’t merely a legal obligation; *it’s
plainly the right outcome**.*

Swedish law is now aligned with the EU Court of Justice’s RAAP ruling and
means U.S. artists are entitled to the same statutory remuneration Swedes
receive when recordings are broadcast/communicated or publicly performed in
Sweden effective July 1, 2025.
What gets paid (and what doesn’t)

Sweden’s change covers broadcast, other communication to the public
(non-interactive), and public performance of sound recordings. It does not
cover on-demand/interactive uses (e.g., Spotify streams) under this
remuneration right. Payments flow through Swedish CMOs (SAMI for
performers; with IFPI Sweden for labels) and then via reciprocal pipelines
to SX if you’ve joined the SX international mandate program (or directly to
you if you’ve signed with a Swedish or other foreign CMO but most have
not).   SX’s international network was built for exactly this moment.

Crucially, you should assume that international collection is not
automatic.  Just because you’re registered with SX domestically doesn’t
solve the international collection issue—you can opt in for “SoundExchange
Direct
<https://musictechpolicy.wordpress.com/?action=user_content_redirect&uuid=dd08e510665ca346b6494df7d6e1a67ecc823849a8ba37ff9d97f683d4039392&blog_id=15688400&post_id=34101&user_id=0&subs_id=380480140&signature=537149ed6d2c11abb49503b792291d31&email_name=new-post&user_email=alex@bmat.com&encoded_url=aHR0cHM6Ly9zeGRpcmVjdC5zb3VuZGV4Y2hhbmdlLmNvbS9sb2dpbi8/bmV4dD0lMkY&email_id=5a08c8fce35c8ad6006630d3fd58a314>”
and supply the metadata SX needs to collect for you abroad.
Do this now (so you’re not chasing back payments later)

So first of all, I wish I had a dollar for every time an artist told me
they didn’t need to register with SX because they’d joined
ASCAP.  ASCAP/BMI/SESAC/GMR are for songs, not sound recordings.  NOT THE
SAME.  NOT THE SAME. NOT THE SAME.

Anyone can join SX by registering for free so they know who to pay for your
recordings.  You can upgrade your membership to include the international
mandate. (Even if. you live in the SDNY--lawyer joke.)

   - Confirm your SoundExchange status. Make sure you’re registered with SX
   as the correct party (featured performer, SRCO/label, etc.) and opted into
   international collections with the upgrade. If you use a manager or admin,
   verify they’ve executed the SX international mandate on your behalf or do
   it yourself.
   - Clean your metadata. Supply ISRCs, accurate track/album data,
   and—crucially—complete performer lineups/roles. Foreign CMOs often require
   more detail than the U.S. baseline for matching; SX explains what they need
   to push your catalog abroad effectively.
   - Get your identifiers in order. If you don’t have an IPN (International
   Performer Number), get one (SX can now create and issue IPNs via an
   agreement with SCAPR
   <https://musictechpolicy.wordpress.com/?action=user_content_redirect&uuid=191f18cf250002f79e61c721b8ceda6440ae20e0ec51299a48292bb075585553&blog_id=15688400&post_id=34101&user_id=0&subs_id=380480140&signature=ecd8d763a53ecdc6946f6c82d2fee59d&email_name=new-post&user_email=alex@bmat.com&encoded_url=aHR0cHM6Ly93d3cuc291bmRleGNoYW5nZS5jb20vbmV3cy9zb3VuZGV4Y2hhbmdlLWJlY29tZXMtZmlyc3Qtc2NhcHItbm9uLW1lbWJlci1vcmdhbml6YXRpb24tdG8tY3JlYXRlLWFuZC1pc3N1ZS1pbnRlcm5hdGlvbmFsLXBlcmZvcm1lci1udW1iZXJzLWlwbi8&email_id=5a08c8fce35c8ad6006630d3fd58a314>).
   Clean, consistent IDs make matching and payout much smoother.
   - Coordinate with your label or admin. If you’re the sound recording
   rightsholder (SRCO), ensure SX has the right to represent your catalog
   internationally. If you’re not the SRCO, confirm your label (or
   distributor) is aligned on neighboring-rights registrations so performer
   royalties and label royalties both flow.

Timeline and expectations

   - Effective date: Sweden’s new rules take effect July 1, 2025. Don’t
   wait until Q4 to organize; neighboring-rights often pay on delays and with
   look-back limits, so missing the setup window can mean missing money.
   - Understand that there will be a pipeline so just because royalties are
   accruing starting July 1 doesn’t mean you will see that money on your
   statements right away.
   - Scope: Think radio/TV, retail, venues, hospitality—non-interactive
   uses that trigger “equitable remuneration” for neighboring
   rights.  Obviously, payments are based on usage so if you are pushing your
   catalog out in Sweden, particularly if you are touring there, some money
   may flow back to you.

Sweden’s shift to national treatment is a step in the right
direction.  Square away your SX international mandate, metadata, and
identifiers now so you’re in line when Swedish royalties start flowing
through.
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